BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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erosion of cost advantages within the narrow segment.
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all rivals share a common input or raw material.
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even product and service offerings that are highly focused are subject to competition from new entrants and from imitation.
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focusers can become too focused to satisfy buyer needs.
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Detailed explanation-1: -The following are potential pitfalls of a focus strategy, except. erosion of cost advantages within the narrow segment. all rivals share a common input or raw material. even product and service offerings that are highly focused are subject to competition from new entrants and from imitation.
Detailed explanation-2: -Answer: Which of the following is NOT a potential pitfall of a focus strategy? A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck in the middle.
Detailed explanation-3: -Uniqueness is valuable Uniqueness is not valuable Differentiation is not easily imitated Product-line extensions do not dilute the brand.
Detailed explanation-4: -Name Porter’s four types of competitive strategies. Cost leadership, differentiation, cost focus, and differentiation focus strategies. Define cost leadership strategy. Selling goods and services at the lowest price in the industry.
Detailed explanation-5: -Some risks of focus strategies include imitation and changes in the target segments. Furthermore, it may be fairly easy for a broad-market cost leader to adapt its product in order to compete directly. Finally, other focusers may be able to carve out sub-segments that they can serve even better.